but at least GUARANTEED for longer life and GURANTEED against higher inflation,if this something worth checking or I am missing something?

No, I think you've got the right idea here. This is a situation where even the most anti-annuity type would admit that an immediate annuity is worth considering.

The health of the couple is going to be a major consideration. If they are healthy and have a family history of longevity, an immediate annuity would be a good way to guard against running out of money.

Personally, I'd advise that they continue to work for a while, investing the $300k in CDs and living off their part-time work and social security, supplemented by the interest from the CDs. Hopefully, they can make do with less than all of the interest and can add a little bit to the CDs each year. When they decide they can no longer work, that's when I'd look at putting the CD money into an annuity. Every year they can wait will add noticeably to the annual payout from the annuity.

On the other hand, if both spouses are in ill health, I'd probably just take the chances with living off of the interest plus some of the principal. They will risk running out of money this way. And if they need significant medical care later on they may end up on Medicaid when their money runs out.

The worst case would be to end up in mediocre health, not really needing nursing care but not able to care for themselves either. And running out of money paying for supplemental care.

At any rate, it's a tough situation with difficult and sometimes irreversible decisions ahead.

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